Pastina Company manufactures and sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The December 31, 2020 trial balance is as follows: Credits PASTINA COMPANY Trial Balance December 31, 2020 Account Title Debits Cash $ 24,550 Accounts receivable 22,000 Supplies 1,400 Inventory 68,000 Prepaid rent 1,250 Office equipment 92,000 Accumulated depr.-office equipment Accounts payable Salaries payable Common stock Retained earnings Totals $209,200 34,500 14,000 1,500 61,000 98,200 $209,200 During 2021, the following transactions occurred: Jan. Jan. Feb. Mar. Apr. Apr. 1 Issued common stock in exchange for $20,000 cash. 31 Rent payment of $1,250 for January 2021, which was paid on December 1, 2020, expires 15 Purchased inventory on account for $80,000 (the perpetual inventory system is used). Lent a supplier $24,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. Paid an insurance company $9,000 for a one-year fire insurance policy. 20 Paid $60,000 to suppliers for the merchandise purchased in 2020 and on February 15, 2021. Received a $4,500 invoice from the local newspaper requesting payment for an advertisement that Patina placed. Check was sent on the same day. 8 Purchased supplies with $4,400 cash. Borrowed $60,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. Paid rent for $1,250 each month. July July Oct 11 Feb-Nov Dec Dcc Dec Jan 7-Dec 22 Jan-Dec Jan-Dec Jan-Dec $2,500 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,250 per month. A customer paid Pastina $3,500 in December for 1,500 pounds of spaghetti to be delivered in January 2022. 15 | $7,000 in cash dividends were paid to shareholders. 2 Paid salaries $21,900 in cash, including salaries of $1,500 accrued from | December 16 through December 31, 2020, and $20,400 for up to December 15, 2021 Sold pasta on account for $161,000. The cost of the pasta was $85,000. Collected $140,000 on account from customers. Paid $8,000 in total to the local utility company for gas and electricity. 31 Depreciation on the office equipment for the year is $11,500. 31 $920 of supplies remained on hand at December 31, 2021. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,550. Dec Dec Dec Required: 1. Prepare general journal entries to record each transaction. Omit explanations. 2. Post the entries to T-accounts. 3. Prepare an unadjusted trial balance as of December 31, 2021. 4. Prepare the necessary December 31, 2021, adjusting journal entries. 5. Post the adjusting entries to T-accounts. 6. Prepare an adjusted trial balance. 7. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. 8. Prepare closing entries and post to the accounts. 9. Prepare a post-closing trial balance. Pastina Company manufactures and sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The December 31, 2020 trial balance is as follows: Credits PASTINA COMPANY Trial Balance December 31, 2020 Account Title Debits Cash $ 24,550 Accounts receivable 22,000 Supplies 1,400 Inventory 68,000 Prepaid rent 1,250 Office equipment 92,000 Accumulated depr.-office equipment Accounts payable Salaries payable Common stock Retained earnings Totals $209,200 34,500 14,000 1,500 61,000 98,200 $209,200 During 2021, the following transactions occurred: Jan. Jan. Feb. Mar. Apr. Apr. 1 Issued common stock in exchange for $20,000 cash. 31 Rent payment of $1,250 for January 2021, which was paid on December 1, 2020, expires 15 Purchased inventory on account for $80,000 (the perpetual inventory system is used). Lent a supplier $24,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. Paid an insurance company $9,000 for a one-year fire insurance policy. 20 Paid $60,000 to suppliers for the merchandise purchased in 2020 and on February 15, 2021. Received a $4,500 invoice from the local newspaper requesting payment for an advertisement that Patina placed. Check was sent on the same day. 8 Purchased supplies with $4,400 cash. Borrowed $60,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. Paid rent for $1,250 each month. July July Oct 11 Feb-Nov Dec Dcc Dec Jan 7-Dec 22 Jan-Dec Jan-Dec Jan-Dec $2,500 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,250 per month. A customer paid Pastina $3,500 in December for 1,500 pounds of spaghetti to be delivered in January 2022. 15 | $7,000 in cash dividends were paid to shareholders. 2 Paid salaries $21,900 in cash, including salaries of $1,500 accrued from | December 16 through December 31, 2020, and $20,400 for up to December 15, 2021 Sold pasta on account for $161,000. The cost of the pasta was $85,000. Collected $140,000 on account from customers. Paid $8,000 in total to the local utility company for gas and electricity. 31 Depreciation on the office equipment for the year is $11,500. 31 $920 of supplies remained on hand at December 31, 2021. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,550. Dec Dec Dec Required: 1. Prepare general journal entries to record each transaction. Omit explanations. 2. Post the entries to T-accounts. 3. Prepare an unadjusted trial balance as of December 31, 2021. 4. Prepare the necessary December 31, 2021, adjusting journal entries. 5. Post the adjusting entries to T-accounts. 6. Prepare an adjusted trial balance. 7. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. 8. Prepare closing entries and post to the accounts. 9. Prepare a post-closing trial balance